Once a star performer with a tenfold increase after its exchange listing during the brief bullish market in early 2024, TIA has now fallen below its initial listing price. As of this writing, it is trading at $1.62, a drop of over 90% from its peak of around $20. As the former leading project in the modular blockchain space, TIA is now mired in negative publicity surrounding founder sell-offs and internal management issues.
The decline of this once-prominent token is not just a symbol of the downturn in the modular blockchain sector. The fall of a leading project that was highly popular last year is only a surface phenomenon. The deeper reality is that many of the once-hot narratives in the crypto space are gradually being debunked.
On one side, traditional stock markets like the Nasdaq are reaching new highs, while on the other, crypto narratives are collapsing one after another, accompanied by sharp price declines. The old crypto narratives are no longer effective, and the industry has reached a point where real-world implementation and practical applications matter most.
From Glory to Collapse
TIA, short for Celestia, was one of the most talked-about modular blockchain projects from late 2023 to early 2024. During the brief bullish market in early 2024, the TIA token soared from single digits after its airdrop to a high of $20. Its vision was to combine Cosmos' sovereign interoperability with Ethereum's rollup-centric approach and shared security.
However, starting in the second half of 2024, as market enthusiasm waned and project development slowed, issues with Celestia's governance and team began to surface. The most controversial of these was the allegation of high-level collective cashing-out. Twitter user @0xCircusLover revealed that as early as October 2024, all C-level executives of Celestia had completed their token unlocks and began large-scale sell-offs. Co-founder Mustafa was specifically accused of selling over $25 million worth of tokens over-the-counter before quietly relocating to Dubai.
At the same time, Celestia's marketing efforts backfired. Key opinion leader (KOL) @ayyyeandy, who had endorsed TIA, was exposed for receiving substantial promotion fees. Similarly, David Hoffman, co-founder of media platform Bankless, frequently promoted TIA but gave contradictory statements about whether he personally held the token, further fueling community suspicions that the project was merely a marketing product manipulated by capital.
Deeper internal rifts emerged from management issues. Yaz Khoury, the former head of developer relations, was dismissed amid allegations of sexual harassment, triggering a public relations crisis. Celestia was also revealed to have acquired competitor Abstract for a seven-figure sum, forcing the latter to withdraw from its collaboration with EigenLayer. This type of "exclusionary acquisition" sparked significant controversy and exposed the team's anxiety about its expansion strategy.
Amid the token's price collapse and eroding community trust, co-founder John Adler proposed a radical governance model called "Governance-as-Proof" in early 2025. This model aimed to replace traditional proof-of-stake mechanisms with off-chain governance voting to address ongoing inflationary pressures. However, before this proposal could be implemented, the facts about the team's sell-offs came to light, leading the community to widely perceive it as a governance smokescreen designed to stabilize prices and掩盖 issues. As of this writing, the token's price has fallen more than 90% from its peak. On-chain activity is equally dismal, with DefiLlama data showing just $231 in gas revenue over the past 24 hours.
Beyond TIA: The Broader Collapse of Crypto Narratives
TIA's failure is not just the story of one project or token. It is a microcosm of the broader disillusionment with new narratives across the crypto industry.
In past cycles, trends like modular blockchains, AI agents, DePIN, GameFi, and NFTs have each blown up massive bubbles, leading to rounds of collective euphoria from both capital and retail investors. By 2025, however, we are witnessing the collective collapse of these former narratives, with altcoins suffering widespread losses.
Similar to TIA, previously hyped projects like WorldCoin and Helium, which were once celebrated by capital and broke into the mainstream, rapidly accumulated attention and saw their prices soar on the back of trending narratives. But in each case, the热度 quickly cooled after the initial wave.
The fall of these star tokens points to a deeper crisis in the crypto industry: a lack of genuine technological innovation and user adoption leads to the repeated consumption and dilution of narratives and trust. After modular blockchains, no new compelling narratives have emerged at the public chain level. Other sectors that still have some traction today, such as AI-blockchain integration projects, largely remain at the conceptual stage. Real-World Asset (RWA) tokenization faces not only regulatory hurdles but also the fundamental question of whether it addresses a real need.
Former trends are being debunked one after another and quickly forgotten. Meanwhile, traditional financial markets continue to report positive developments. Stocks related to crypto compliance, such as those involving stablecoins and regulated exchanges, have seen sustained growth in both U.S. and Hong Kong markets.
On one side, there is a lack of native crypto innovation and plummeting token prices. On the other, compliant crypto-related projects in traditional stock markets are being embraced by capital and the market. Some interpret this as a sign that the industry is failing, but it actually serves as a warning to projects: only genuine technological advancement and practical application can create real value. The old crypto playbook of storytelling, traffic competition, pump-and-dump schemes is no longer viable. Just like in Web2, Web3 projects now compete on execution and real-world utility.
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Frequently Asked Questions
What is a modular blockchain?
A modular blockchain is a design that separates the core functions of a blockchain—such as execution, consensus, data availability, and settlement—into distinct layers. This approach aims to improve scalability and flexibility compared to monolithic blockchains that handle all functions on a single layer.
Why did TIA's price drop so significantly?
TIA's price decline resulted from a combination of factors, including slow ecosystem development, allegations of insider selling by founders and executives, negative publicity around marketing practices, and a broader downturn in the modular blockchain narrative and crypto market sentiment.
What does "narrative collapse" mean in crypto?
Narrative collapse refers to the loss of belief in a once-popular concept or trend that drove investment and speculation. When projects fail to deliver on their promised utility or innovation, the story that supported their value disintegrates, often leading to sharp price declines.
Are all AI and blockchain projects considered high-risk?
While not all are high-risk, many AI-blockchain projects remain in early conceptual stages with unproven models. Investors should scrutinize the technological viability, team expertise, and real-world application potential before committing capital.
How can investors identify sustainable crypto projects?
Look for projects with clear utility, active user adoption, transparent governance, and steady development progress. Avoid those relying heavily on hype without tangible products or those with histories of unethical team behavior.
What is the significance of traditional markets embracing crypto compliance?
The growth of compliant crypto-related stocks in traditional markets indicates increasing institutional acceptance and regulatory clarity. It highlights a shift where value is being assigned to projects that operate within established legal frameworks and offer real-world solutions.